New FTC Rules (Guides) – Are They For Real?
When are the new FTC Rules (Guides) in effect? What are they? Who do they affect? Learn about the new FTC Rules!
The FTC (U.S. Federal Trade Commission) has enacted new guides or rules that govern and affect endorsements by organizations, celebrities, consumers, experts, material connections (affiliate compensation), testimonials, and bloggers.
Advertisements showing a consumer sharing their experiences for a service or product, must disclose the outcome that can generally be expected. The term “results not typical” will no longer be acceptable.
“Material connections” or affiliate compensation usually in the form of payments or free products must be disclosed. This is sometimes called the affiliate compensation disclosure. This is true if you are a blogger or internet marketer.
Celebrity endorsers, under the new guides, must disclose their connection with advertisers (material connection – affiliate compensation) and not give unconfirmed or false statements about the product or service. Advertisers and endorsers may both be liable.
The effective date for these new guides was December 01, 2009.
How can you protect yourself, your blog and website? You can hire an attorney to draft the appropriate documents or use a software program to provide the correct documents. Either way, you should have certain documents on your website or blog. They include Terms and Conditions of Use, Privacy Policy, Anti-Spam Policy, External Links Policy, Earnings Disclaimer, Affiliate Agreement, Affiliate Compensation Disclosure (material connection) and the Digital Millennium Copyright Act (DMCA) Notice.
Remember, the FTC guides are to protect consumers. Be in compliance so you and others can enjoy your blog and website.
If you wish to view the entire regulations, please view the FTC and Electronic Code of Federal Regulations website links below.
- Effective Date: December 01, 2009
http://www.ftc.gov/os/2009/10/091005endorsementguidesfnnotice.pdf
- FTC Publishes Final Guides Governing Endorsements, Testimonials
Changes Affect Testimonial Advertisements, Bloggers, Celebrity Endorsements
http://www.ftc.gov/opa/2009/10/endortest.shtm
- Electronic Code of Federal Regulations
Title 16: Commercial Practices
PART 255—GUIDES CONCERNING USE OF ENDORSEMENTS AND TESTIMONIALS IN ADVERTISING
… 255.5 “Disclosure of material connections. … When there exists a connection between
the endorser and the seller of the advertised product that might materially …”
Website Legal Forms Generator version 2.0 by Internet lawyer Mike Young is for bloggers and website owners who want to protect their sites.
Note: This is not legal advice. To address legal issues consult your internet lawyer.
